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Non-contributory Social Protection Programmes Database
Latin America and the Caribbean
Pensión Básica Solidaria (Basic Solidarity Pension) (2008-)

 

 

Date: 2008-
Web: Official website of the programme
Description: The Basic Solidarity Pension, which was introduced as a result of social security reform of 2008 together with Solidarity Pension Contribution for old age and disability, is given to older people with higher levels of social vulnerability. The recipients are all individuals who are not entitled to a pension under a pension system and meet the requirements set by law. It is also a component of Chile Solidario.
   

Characteristics

Target population: Adults older than 65 years old who do not receive contributory pensions and individuals with physical and mental disabilities aged between 18 and 65. Must meet a minimum of 20 years living in Chile and belong to the first three income quintiles.
Geographic scale: National
Targeting method: 1) Proxy means test
2) Categorical: Requirements for residence (20 years for PBS-Older Persons and 5 years for APS - disability), age and disability condition.
Instrument of selection: Social Protection Record (FPS)
Comments: As part of the measures to address the effects of the pandemic and social isolation, the Covid-19 Emergency Family Income (IFE) was announced in April 2020. IFE seeks to support the most vulnerable households with informal jobs and whose incomes have been reduced by the health crisis caused by Covid-19. Also, between June and October 2020, the coverage and amounts of the Emergency Family Income (IFE) were extended. Later, other extensions were announced: the Covid Christmas Grant (December 2020); the Covid Grant (January, February and March 2021); the extended IFE (April and May 2021); and the Universal IFE (June, July, August and September 2021). Households with at least one member receiving the Basic Old Age Solidarity Pension (PBSV) or Disability Pension (PBSI) will receive the IFE with no need to apply. For more information on these measures, see the observatory of social protection measures to address COVID-19 of ECLAC's Social Development Division ([online] https://dds.cepal.org/observatorio/socialcovid19/listamedidas.php?id_pais=chl) and the Emergency Family Income reports of the Ministry of Social Development and Family of the Government of Chile ([online] https://www.desarrollosocialyfamilia.gob.cl/informacion-social/informe-ingreso-familiar-de-emergencia/descargar-informes-de-ingreso-familiar-de-emergencia).
   

Institutionality

Legal framework: Law Nº 20,255
Responsible organization(s): Ministry of Labour and Social Welfare
Executing organization(s): Instituto de Previsión Social (IPS, ex-INP) (Social Welfare Institute )
Source of funding: Pensions Fund Reserve; Government of Chile
   

1) Pensión básica solidaria de vejez (Basic Solidarity Pension for Older Persons)

Recipient(s): Adults over 65 years of age without pension rights
Mode of transfer: Flat transfer
Mode of delivery: Cash withdrawal
Periodicity of delivery: Monthly
Recipient of the transfer: Direct participant
Comments: This type of pension is only compatible with the pensions granted according to Law No. 8056 (grace), 19,123 and 19,980 (Rettig Law), 19.234 (exempt) and 19 992 (Valech Law), as long as these are below the PBS (in which case the amount of the transfer will be obtained by subtracting the pensions received by the applicant of the above mentioned law of the basic older people's pension).
Amount : As of July 1, 2020, people ages 65 to 74 receive CLP $141,374; between 75 and 79 years old CLP $147,029; and CLP $169,649 for people over 80 years of age.

 

2) Pensión básica solidaria de invalidez (Basic Solidarity Pension for people with disability)

Recipient(s): Adults between 18 and 65 years of age with physical and /or mental disabilities.
Mode of transfer: Flat transfer
Mode of delivery: Cash withdrawal
Periodicity of delivery: Monthly
Recipient of the transfer: Direct participant
Comments: The Basic Solidarity Pension for people with disability is incompatible with any other pension of any other pension system.
Amount : From July 1st, 2020, the amount corresponds to CLP $ 141,374.

 

3) Ingreso Familiar de Emergencia - IFE (Emergency Family Income)

Recipient(s): As part of the measures to deal with the effects of the Covid-19 pandemic and social isolation, recipients of the Old Age or Disability Solidarity Pension Contribution were entitled to receive the Emergency Family Income (IFE).
Mode of transfer: Depending on the characteristics of the family: The higher the social vulnerability of the family and its size, the higher the amount.
Mode of delivery: Transfer to bank account
Periodicity of delivery: Monthly
Recipient of the transfer: Direct recipient
Comments: Initially, IFE´s support was delivered from May to October 2020, and later granted as Bono Covid Navidad in December 2020. Subsequently, through the Extended IFE (which includes Bono Covid) it was delivered from January to May 2021; while with the Universal IFE from June to November 2021 and finally as Labor IFE it was granted from January to September 2022. For more information on these measures, see the observatory of social protection measures to address COVID-19 of the Social Development Division of ECLAC ([online] https://dds.cepal.org/observatorio/socialcovid19/listamedidas.php?id_pais=chl) and the reports of the Emergency Family Income of the Ministry of Social Development and Family of the Government of Chile ([online] https://www.desarrollosocialyfamilia.gob.cl/informacion-social/informe-ingreso-familiar-de-emergencia/descargar-informes-de-ingreso-familiar-de-emergencia).

 

Annual Report, Third Report August 2011-December 2012

Author: Consejo Consultivo Previsional
Date: 2012
Publication info: Online
Link: See Webpage
Topic: Annual Report

 

First-round impacts of the 2008 Chilean pension system reform

Author: Behrman, J., Calderon, M., Mitchell, O., Vazquez, J. and Bravo, D.
Date: 2011
Publication info: PARC Working Paper, N° 33, Filadelfia, University of Pensilvania
Link: See Webpage
Topic: Impact Evaluation

 

Money can buy me life: The effect of a basic pension on mortality: A regression discontinuity design

Author: Miglino, E., Navarrete, N., Navarrete, G., and Navarrete, P.
Date: 2018
Publication info: CAF Working Paper No. 2018/12
Link: See Webpage
Topic: Impact evaluation

 

The Effects of Means-tested Noncontributory Pensions on Poverty and Well-being: Evidence from the Chilean Pension Reforms

Author: Italo López García and Andrés Otero
Date: 2017
Publication info: Michigan Retirement Research Center, University of Michigan; WP 2017-358
Link: See Webpage
Topic: Impact Evaluation

 

Monthly Statistical Report

Author: Subsecretary of Social Security
Date: 2016
Publication info:
Link: See Webpage
Topic: Report

 

Annual Report, Fifth Report June 2014 to April 2015

Author: Social Security Advisory Council
Date: 2015
Publication info:
Link: See Webpage
Topic: Report

 

The impact of Chile`s 2008 Pension Reform on Labor force participation, Pension savings, and gender equity

Author: Joubert, C and Todd, P
Date: 2011
Publication info: Working Paper
Link: See Webpage
Topic: Impact Evaluation

 

Formal labor market and pension wealth: Evaluating the 2008 Chilean pension reform

Author: Attanasio, O., Meghir, C. and Otero, A.
Date: 2011
Publication info: Working Paper
Link: See Webpage
Topic: Impact Evaluation

 

"Programs of poverty alleviation Puente and Oportunidades. The actors' point of view"

Author: Arriagada, Irma and Charlotte Mathivet
Date: 2007
Publication info: Social Policy Series (134), Santiago. ECLAC
Link: See Webpage
Topic: Evaluation

 

 

 

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